EXPERTS have warned one of the most affluent parts of North Yorkshire could be hit by a rise in homelessness.

Buying properties in the “Golden Triangle”, which covers the area between York, Harrogate and Leeds, is proving to be out of the reach of increasing numbers of people as house prices rise above the £1 million mark.

Councils fear they will struggle to deal with the situation, which has emerged as a leaked letter from the office of Communities Secretary Eric Pickles predicted Government plans to cut welfare payments could leave 40,000 families homeless.

City of York Council leader James Alexander said: “Our council officers are very concerned about this. This is a problem which is happening to a broad section of people and is an issue of huge importance.”

Liz Hancock, of the Harrogate Homeless Project, said: “This is the hidden problem inside the Golden Triangle. We have seen a significant rise in the number of people we are receiving. For people trying to move into private rented property in Harrogate, it is really difficult at the moment. We have a real shortage of landlords who are prepared to take people on housing benefits.”

Average house prices in North Yorkshire currently stand at almost £210,000, but average earnings last year were less than £19,000. Property prices in the Golden Triangle are up to 12 times the rate of average incomes.